Do I need to add Child Care Expenses if I had FSA and all of my expenses were covered through the FSA?

[chokshi76]

Hi there, 

My wife and I allocated total of $5000 for the FSA dependent care of two kids. We kept their expenses within that amount pretty much equally divided in expenses between kids. We already got reimbursement from the FSA on that. Do I still need to put the same expenses back into Turbo Tax Online while doing taxes? I don't want to get a tax break/deduction twice. Please let me know.

Thank you

[MindyB]

Yes.  Input the expenses, otherwise you'll be taxed on the FSA since it will appear the funds weren't used for child care.

Here's how to do this in TurboTax Online:

• Navigate to Federal > Deductions & Credits
• Add/Edit Dependent Care Credit
• Answer the interview questions and add the expenses for each child care provider

[chokshi76]

Thank you. So I enter all the expenses then is there a way to tag them saying they were claimed through FSA?

[MindyB]

The form will compute that for you.  If you have not entered the child care expenses yet, then you probably are showing $5,000 as taxable on line 26 of Form 2441 currently.  Once you enter the expenses, that will be reduced to zero.  Form 2441 is used for both the Child Care Credit and taxable dependent FSAs.

[chokshi76]

You are right! Thank you. This just saved me from paying additional taxes.